WILLIAM DONALD SCHAEFER, Governor Ch. 503

(J) (1) (I) ON OR BEFORE DECEMBER 31 OF EACH YEAR, EACH
EXISTING PRODUCER SHALL FILE WITH THE FUND A BOND FOR THE BENEFIT
OF THE FUND FOR THE SUCCEEDING YEAR.

(II) ON APPLICATION TO THE FUND TO BE APPOINTED
A PRODUCER, EACH APPLICANT SHALL FILE WITH THE FUND A BOND FOR
THE BENEFIT OF THE FUND FOR THE BALANCE OF THE CURRENT YEAR.

(2) THE BOND SHALL BE:

(I) IN THE AMOUNT OF $10,000;

(II) EXECUTED BY AN AUTHORIZED SURETY INSURER;
AND

(III) CONDITIONED THAT THE PRODUCER WILL
ACCOUNT FOR AND PAY OVER TO THE PERSON ENTITLED ALL MONEYS
BELONGING TO THE ENTITLED PERSON WHICH MAY COME INTO THE
PRODUCER'S HANDS IN ACCORDANCE WITH THE PROVISIONS OF THIS
SUBTITLE AND THE BINDING RULES OF THE FUND.

(3)  THIS SUBSECTION DOES NOT APPLY TO ANY PRODUCER
WHO HAS FILED A BOND WITH THE COMMISSIONER UNDER § 168(C)(2) OF
THIS ARTICLE.

(4)  (I) A PRODUCER SHALL BE DEEMED TO HAVE COMPLIED
WITH THIS SUBSECTION IF AN INSURER CERTIFIES TO THE FUND THAT:

1.  THE INSURER HAS A BOND IN EFFECT THAT
COVERS THE PRODUCER AND COMPLIES WITH THE REQUIREMENTS OF THIS
SUBSECTION; AND

2.  THE BOND COVERAGE EXTENDS TO THE FUND
WHEN PERSONS APPLY TO THE FUND FOR COVERAGE THROUGH THE PRODUCER.

(II)  THE CERTIFICATION REQUIRED UNDER THIS
PARAGRAPH SHALL BE MADE BY A DULY AUTHORIZED REPRESENTATIVE OF
THE INSURER.

(III)  A COPY OF THE CERTIFICATION SHALL BE
PROMPTLY MAILED TO THE FUND.

(5)  A PRODUCER'S AUTHORITY TO WRITE ANY BUSINESS ON
BEHALF OF THE FUND MAY BE TERMINATED ON 10 DAYS' WRITTEN NOTICE
IF THE BOND IS NOT:

(I)  FILED WITH THE FUND IN A TIMELY MANNER; OR

(II)  CONTINUOUSLY MAINTAINED IN EFFECT DURING
THE PERIOD OF TIME THE PRODUCER HAS AUTHORITY TO WRITE ANY
BUSINESS ON BEHALF OF THE FUND.

243L.

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